All You Need to Know About Transferring Bike Insurance.

While transferring insurance is crucial with ownership transfer, many fail to make such arrangements, thus leading to possible legal and financial issues. 

Why Transfer Bike Insurance? 

According to the IRDAI (Insurance Regulatory and Development Authority of India), bike insurance must be transferred within 14 days post-sale; otherwise, any claim will be rejected. As per a recent report by Policybazaar, about 30% of bike insurance claims were rejected in 2024 for wrong or no transfer of insurance. 

Steps for Transfer of Insurance

Update the RC - The RC must reflect the new owner's name. 

Request NOC from Previous Owner - A No Objection Certificate helps facilitate the process of transfer. 

Inform Insurer - Apply along with documents such as the RC after update, NOC, old policy copy, and identity proof. 

Transfer Fee - The transfer fee normally ranges from ?150-500, depending on the insurer. 

Important Tip

When transferring the insurance, you may switch insurers to one with better coverage for lower premiums. Digital insurers such as Acko and Digit are expected to have a direct, quick transfer option in-app starting in 2025.

What if You Don't Transfer?

If at any stage the bike is involved in an accident while the insurance is in the name of the old owner, then the claim would surely be rejected, and the new owner would be faced with legal problems. 

Final Words

Transferring insurance for the bike is simple, quick, and a legal obligation. Policy transfer is a priority while selling or buying a bike!